✨ Financial Statements
30 NOVEMBER 2007 NEW ZEALAND GAZETTE, No. 133 3487
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2007
POWERCO
GAS DIVISION
Commitments
Commitments for future capital expenditure resulting from contracts entered into:
| 30 June 2007 | 30 June 2006 | |
|---|---|---|
| NZ$000 | NZ$000 | |
| Not longer than 1 year | 6,625 | 100,413 |
| Longer than 1 year and not longer than 5 years | 13,682 | 146,646 |
| Longer than 5 years | - | - |
| 20,307 | 247,059 |
11 RELATED PARTY TRANSACTIONS
Trading Transactions
For the year ended 30 June 2007, the Powerco gas division was charged management service fees of $0.342 million from BBI Networks (New Zealand) Limited. The payment terms are: payment is required when an invoice is provided from BBI NZ and the amount is set in recognition of the following services being provided: executive strategic management, corporate development and asset management operational advice and direction, corporate financial advice, strategic treasury management advice, corporate revenue and risk management advice and other corporate policy formulation and advice.
The Powerco gas division has inter-company accounts with the other divisions of Powerco Limited. Notional interest has been recognised on this inter-company balance during the period at the same rate as the division's external debt.
An additional charge for the cost of insurance has been made from the corporate division to the gas division of $784,391 (2006: $603,550).
The Powerco gas division acquired $5.805 million of non-network assets from one of the other divisions of Powerco Limited, of which $0.471 million was made up of intangible assets. Of these acquired assets, $2.322 million was funded by equity and $3.483 million by inter-division debt.
Compensation of key management personnel
| Year ended | Year ended | |
|---|---|---|
| 30 June 2007 | 30 June 2006 | |
| NZ$000 | NZ$000 |
The remuneration of directors and other members of key management during the year were as follows:
| Short-term benefits | 355 | 2,352 |
| Post-employment benefits | 5 | 29 |
| 360 | 2,381 |
The remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.
12 SUBSEQUENT EVENTS
In October 2007, the NZ Commerce Commission delivered its draft Decision Paper on the Authorisation for the Control of Supply of Natural Gas Distribution Services by Powerco Limited. The draft decision proposes an initial reduction in the price of Powerco’s NZ gas distribution services of 42%, with annual allowable price changes thereafter of CPI-2% to 2016. Powerco is reviewing this draft decision and the Commerce Commission is likely to make its final decision in the first half of 2008.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 133
Gazette.govt.nz —
NZ Gazette 2007, No 133
✨ LLM interpretation of page content
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Powerco Gas Division Financial Statements for the year ended 30 June 2007
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Powerco, Gas Division, Commitments, Related Party Transactions, Management Service Fees, Inter-company Accounts, Insurance, Asset Acquisition, Key Management Personnel Remuneration, Subsequent Events, Commerce Commission, Gas Distribution Services